Lexington could be hit hard by proposed solar power changes

UPDATE 10:57 a.m. 7/20/17: An earlier version of this story incorrectly stated the amount of money Lexington could lose under the proposed rate changes. The correct amount is $357,000.

A new proposal by Eversource Energy could see Lexington hit by a 40-percent cut to the reimbursement rates for solar energy for towns, cities, and residents, according to town officials.

Lexington town leaders joined a group of municipal and state government representatives on a conference call Wednesday morning to discuss Eversource's new proposed rate changes.

The rates would apply existing and new solar projects. The proposed rate changes would also make it difficult for municipalities to meet the clean energy goals as codified in the state's Global Warming Solutions Act, passed in 2008, participants in the call said. That law set goals for towns and cities to reduce their greenhouse gas emissions by 25 percent by 2020 and 80 percent by 2050. In addition, participants said the rate cut does not reflect

State regulator to weigh in

The rate case will be discussed with the Department of Public Utilities. According to Ann Berwick, co-director of sustainability for Newton, she expects a decision on the rates in late fall or winter.

Newton Mayor Setti Warren said in his opening remarks, that not only would it effect current town and city budgets, but it would make it difficult to create new solar projects. Warren, who is running for governor, and other representatives from affected towns, said they wanted the rates for already-existing solar projects to be grandfathered in. Assistant State Senate Majority Leader Cynthia Creem, D-Newton, said the new rates would hurt taxpayers, and local officials discussed how the rates could effect their communities.

Mark Sandeen, the chairman of Sustainable Lexington Committee, was also part of the conference call. He referenced the Green Communities Act, also passed in 2008, which helps towns technically and financially to attain clean energy sources such as solar power.

"Lexington was one of the first Green Communities," said Sandeen.

Town could loose thousands

He mentioned that Lexington has a 1.1-megawatt rooftop solar project on five school buildings and the Cary Memorial Library, which was completed in December, 2014. The town had a recent May ribbon-cutting of a 2.2-megawatt solar project at the town's landfill.

"We would expect," Sandeen said, "that the combination of these projects would generate something on the order of $18 million in revenue for the town over the next 25 years and and $8 million in health benefits."

"But we are concerned," said Sandeen.

The decrease in the proposed reimbursement rates, Sandeen said, could cost the town about $357,000 a year in reduced compensation for their solar projects. He mentioned the Hastings School project which they were hoping to make a "net-zero" building, which would mean adding solar energy panels that could supply much of the building's energy needs.

"This kind of rate change might have a very deleterious effect on these types of actions," Sandeen said.

At the Monday meeting of Lexington's Board of Selectmen, Lexington Town Manager Carl Valente said Lexington would give testimony in the Eversource rates case to try and have Lexington's existing projects to be unaffected by the rate change.

Wider impact

"The rate case is actually much bigger than just this issue," said Berwick.

She said the rate change was a small part of a much larger package of rate changes Eversource is requesting. The changes, she said, could result in communities owing more money to solar developers than they are taking in.

"The failure to grandfather in existing rates, these existing facilities," said Berwick, "means that many of them will go underwater."

“It’s reasonable to expect some rational continuity in the rate structure,” Sandeen said in a separate interview.

He said under the new rates, residents and municipalities power rates would only reflect peak power demand.

Sandeen also mentioned that Lexington had applied to intervene and will testify before the state Department of Public Utilities.

"I have to believe that cooler heads will prevail and we will grandfather these existing systems," said Sandeen.